Keppel Data Centres Holding (KDCH), a joint venture between Keppel Telecommunications & Transportation Ltd (Keppel T&T) and Keppel Land Limited, said on Friday that its wholly-owned subsidiary has entered into a sale and purchase agreement with the Reggeborgh Group and VolkerWessels Group to acquire a data centre located in Almere, the Netherlands.
Almere Data Centre 2 is a purpose-built shell and core data centre facility strategically located on freehold land adjacent to Almere Data Centre 1, a fully fitted and fully occupied data centre acquired by Securus Fund in 2013. Both facilities are located 40 minutes away from Amsterdam.
On the same day, Keppel Data Centre Almere BV, a wholly-owned subsidiary of KDCH, also signed a binding letter of intent with a major tenant, committing to approximately 40 per cent of the space at Almere Data Centre 2.
Mr Thomas Pang, CEO of Keppel T&T said: "Amsterdam is a strategic location as a key first tier data centre market in Europe. With excellent digital infrastructure and opportunities to tap on renewable wind and solar energy, the region is shaping up to be a hub for big data."
"We are pleased that our extensive experience and track record has allowed us to double our data centre footprint here in the Netherlands," he added.
Keppel T&T said the European data centre market has seen robust demand, with co-location take-up growing 12.3 per cent year-on-year. The comany said this figure is expected to increase further, as the adoption of cloud computing drives investment on related infrastructure and services. Research by IHS Technology expects a 20 per cent growth in global business spending on cloud computing infrastructure and services to US$174 billion in 2014.
Separately, on 10 November 2014, Keppel T&T announced the proposed listing of Keppel DC REIT as well as the proposed divestment of Keppel T&T's interests in Keppel Digihub, Keppel Datahub 1, Gore Hill Data Centre and Citadel 100 Data Centre, and their proposed injection into Keppel DC REIT. Approvals will be sought at an extraordinary general meeting (EGM) to be held on 25 November 2014.
The abovementioned acquisition is not expected to have material impact on the net tangible assets or earnings per share of Keppel T&T for the current financial year.